The latest episode of Shark Tank India featured an exciting new snack brand called Makino. Founded by Anik Patel, Keval Patel, Ronik Patel, and Priyank Patel, Makino specializes in bringing the best of Indian and Mexican flavors under one roof, offering a range of healthy nachos, corn chips, corn twists, and peanuts. The brand's unique selling point is its commitment to health and wellness, with its nachos containing 40% less oil, zero cholesterol, and zero trans-fat.
The founders of Makino came to the Shark Tank with an impressive ask - ₹2 crores for just 2% equity in their company. The pitch was led by Priyank Patel, the CEO, with Ronik in charge of e-commerce and branding, Keval in charge of modern trade and Horeca, and Anik overseeing procurement, production, and logistics.
Makino's story began in 2018, when the four friends, who were born and raised in a Gujarati family, decided to create a snack that combined the best of both worlds - Indian and Mexican flavors. They quickly realized that there was a huge gap in the market for healthy snacks, and set out to create a product that would satisfy the taste buds while also promoting wellness.
The brand's range of nachos comes in eight exciting flavors, including cheese, jalapeno, and peri-peri. They also offer corn chips, corn twists, and peanuts in various flavors. Makino's products are now available in over 17,000 retail stores, e-commerce, modern trade, and in more than 15 countries.
During the pitch, the founders revealed that they had made sales of ₹12 crores between April and August 2022, with August alone accounting for ₹2.65 crores. In the financial year 2021-22, their net sales were ₹18.84 crores, with 10% of the total sales coming from exports to GCC and African countries. However, despite the impressive sales figures, the company was fully bootstrapped, with a loan of around ₹15 crores in the bank. The gross profit before COVID was 55-60%, but the current gross profit has fallen to 40%. In 100% net sales, COGS is 60%, Sales and Taxes are 13%, Travelling expenses are 2%, and transportation cost is 12%. Marketing is 10-12%, with a yearly burn of ₹1.97 crores. The founders have invested a total of ₹42 crores in the business, making it clear that they are committed to its success.
However, despite the impressive numbers, none of the Sharks were interested in investing in Makino. The company's huge investment and loss despite the impressive sales figures made it a risky investment for the Sharks. Nevertheless, the Makino team remained positive, grateful for the opportunity to pitch their business on national television, and determined to continue growing their brand.
In conclusion, Makino is a young brand with a lot of potentials. Its focus on health and wellness, combined with its commitment to offering exciting flavors, has made it a favorite among consumers in India and beyond. The company's impressive sales figures and commitment to quality are a testament to the hard work of its founders, and they are passionate about creating a successful business. While the Sharks may not have seen the value in investing in Makino, there is no doubt that the company will continue to thrive and succeed in the years to come.
There are several key learnings that businesses can take away from the story of Makino to help them grow and succeed. Here are a few:
- Focus on solving a real problem: Makino founders identified a gap in the market for healthy and flavorful snacks and set out to fill that gap. They focused on creating a product that would satisfy the taste buds while promoting wellness, and this has been a key factor in the brand's success. Businesses should also focus on solving real problems and providing value to their customers, rather than simply trying to make a profit.
- Be innovative and creative: Makino's selling point is its fusion of Indian and Mexican flavors, which sets it apart from other snack brands. Businesses should strive to be innovative and creative in their approach and to offer something unique and valuable to their customers.
- Be resilient: Despite not securing investment from the Sharks, Makino's founders remained positive and determined to continue growing their brand. Businesses will face setbacks and challenges, but resilience and perseverance are essential qualities for success.
- Invest wisely: Makino's founders had invested a significant amount of money in their business and were fully bootstrapped despite their impressive sales figures. Businesses should be mindful of their investments and use their resources wisely to ensure long-term sustainability and growth.